Buying a Hawaii short sale can be a great way to get the home of your dreams for a bargain basement price, but it is important to check the property out thoroughly before taking the plunge. While short sales can be great opportunities, they can also be fraught with peril for the unwary buyer.
Comparable Sales
Comparable sales data is an indispensable part of the real estate market, whether you are talking about new construction, existing homes, foreclosures or short sales. The real estate market varies quite widely from town to town and even from neighborhood to neighborhood, and the only way you can really know what a particular property is worth is by looking at what actual buyers have been willing to pay for similar homes What the home appraised for a year ago - or even a month ago ó is not important. The only guide to a short sale's real value is what a buyer would be willing to pay for it today.
Sometimes a short sale will be priced at an artificially low price in order to get the attention of buyers and investors The problem with this strategy is that the price is often so low that the bank will not accept it. In order to increase your odds it is best to make your offer close to the true market value of the home. Keep in mind that these ridiculously priced short sales are bound to attract multiple offers, so it is important to make your offer accordingly.
Do Your Homework
Before considering a particular property it is important to have your agent research the amount of the outstanding mortgage, along with any additional loans that may be recorded against the property. This information is vital when it comes to purchasing a short sale. You will need to know what you are getting into before you sign the paperwork.
It is also important to investigate the track record of the listing agent. Different listing agents will have different levels of success when it comes to negotiating short sales, so be sure that you are working with an agent you can trust. By doing your homework and understanding what the property is truly worth you will be able to craft an offer that you can live with - one that will save you a substantial amount of money while still being acceptable to the bank who holds the loan.
